Why this market is moving now
- Directive (EU) 2026/470, adopted 24 February 2026, narrows reporting to companies above EUR 450 million turnover and 1,000 employees.
- Member States must transpose the scope changes by 19 March 2027.
- Companies outside the new thresholds leave CSRD scope for financial years starting on or after 1 January 2027.
- The Commission adopted two delegated acts on 3 July 2026 simplifying the ESRS reporting standards.
Key figures
Each figure names the source it came from. Open the source list below to read the quoted line.
| Figure | Value | Year | Source |
|---|---|---|---|
| Directive (EU) 2026/470 limits sustainability reporting to undertakings with net turnover above EUR 450 million and an average of more than 1,000 employees. | 450 EUR million net turnover (and more than 1,000 employees) | 2026 | EUR-Lex |
| The net turnover threshold for third-country undertakings reporting in the EU rises from EUR 150 million to EUR 450 million. | 450 EUR million (third-country threshold, up from 150) | 2026 | EUR-Lex |
| Member States must bring into force the national measures for the scope changes by 19 March 2027. | 2027-03-19 transposition deadline | 2027 | EUR-Lex |
| Companies that fall outside the new thresholds leave the CSRD's scope for financial years starting on or after 1 January 2027. | 2027-01-01 | 2027 | EUR-Lex |
| The deadline for the Commission to adopt limited assurance standards for sustainability reporting moved to 1 July 2027. | 2027-07-01 | 2027 | EUR-Lex |
| The Commission must report by 19 March 2028 on technological solutions that let undertakings collect, process and exchange sustainability data in an automated way. | 2028-03-19 report deadline | 2028 | EUR-Lex |
| In February 2025 the Commission proposed to remove around 80% of companies from the scope of CSRD (the final thresholds differ from that proposal). | 80 % of companies removed (Commission proposal) | 2025 | European Commission |
| The first companies subject to CSRD applied the rules for the 2024 financial year, in reports published in 2025. | 2024 first financial year | 2024 | European Commission, Directorate-General for Financial Stability, Financial Services and Capital Markets Union |
| The Commission adopted two delegated acts on 3 July 2026 to simplify certain European Sustainability Reporting Standards (ESRS). | 2 delegated acts | 2026 | European Commission, Directorate-General for Financial Stability, Financial Services and Capital Markets Union |
| Workiva reported total revenue of $255 million in Q2 2026, up 19% year on year, and had 6,750 customers at 30 June 2026 (global figures). | 255 USD million (global) | 2026 | Workiva Inc. |
Sources and method
The figures on this page come from the public sources listed below. Read how we work.
- EUR-Lex: Directive (EU) 2026/470 of 24 February 2026 amending Directives 2006/43/EC, 2013/34/EU, (EU) 2022/2464 and (EU) 2024/1760 (2026-02-26)
Quoted lines
- Figure 1
limited to undertakings with a net turnover exceeding EUR 450 000 000 and an average of more than 1 000 employees during the financial year
- Figure 2
the net turnover threshold for the third-country undertaking should be raised from EUR 150 000 000 to EUR 450 000 000.
- Figure 3
Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with Articles 1, 2 and 3 by 19 March 2027.
- Figure 4
will fall outside the scope of this Directive as of financial years starting on or after 1 January 2027
- Figure 5
the deadline for their adoption should be postponed to 1 July 2027.
- Figure 6
The Commission shall, by 19 March 2028, submit a report to the European Parliament and the Council on technological solutions for sustainability reporting
- Figure 1
- European Commission: Commission simplifies rules on sustainability and EU investments, delivering over €6 billion in administrative relief (IP/25/614) (2025-02-26)
Quoted lines
- Figure 7
Remove around 80% of companies from the scope of CSRD
- Figure 7
- European Commission, Directorate-General for Financial Stability, Financial Services and Capital Markets Union: Corporate sustainability reporting (2026-07-03)
Quoted lines
- Figure 8
have to apply the new rules for the first time in the 2024 financial year, for reports published in 2025.
- Figure 9
Adoption of two delegated acts, amending Delegated Regulation (EU) 2023/2772 as regards the simplification of certain sustainability reporting standards
- Figure 8
- Workiva Inc.: Workiva Announces Second Quarter 2026 Financial Results (2026-08-04)
Quoted lines
- Figure 10
Total revenue for the second quarter of 2026 reached $255 million, an increase of 19% from $215 million in the second quarter of 2025.
- Figure 10
Companies to watch
Workiva
US-listed reporting platform used for accounting, finance and sustainability reporting; Q2 2026 revenue $255 million and 6,750 customers.
Novisto
ESG data software vendor whose homepage discusses the simplified ESRS and CSRD path (https://www.novisto.com/).
Sweep
ESG and carbon software vendor; its homepage lists a Leader placement in the Verdantix 2026 Green Quadrant for enterprise carbon management (https://www.sweep.net/).
What the full report covers
- 01Executive summary
The answer in one page: size, direction and what moves it - 02Market definition and scope
What is in and out of the European Union market - 03Market size, 2021 to 2025
Historical series and growth rates - 04Outlook to 2031
Base, low and high scenarios with stated assumptions - 05Rules, policy and deadlines
Regulation and programmes that change demand - 06Drivers and barriers
What accelerates or slows adoption, by customer segment - 07Prices, costs and margins
Unit economics where public data allows - 08Competitive landscape
8 to 12 company profiles with recent moves - 09Opportunities and risks
For new entrants, suppliers and investors - 10Method and sources
Every assumption and source, listed
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Frequently asked questions
Who has to report under CSRD after the Omnibus changes?
Directive (EU) 2026/470 limits sustainability reporting to undertakings with net turnover above EUR 450 million and an average of more than 1,000 employees.
When must Member States implement the changes?
The directive requires Member States to bring in the necessary national measures by 19 March 2027.
When do companies outside the new scope stop reporting?
The directive says companies outside the new thresholds fall out of scope for financial years starting on or after 1 January 2027.
How many companies are removed from CSRD scope?
The Commission's February 2025 proposal said around 80% of companies would be removed. The final law set thresholds of EUR 450 million turnover and 1,000 employees, which differ from that proposal.
Are reporting standards getting simpler?
Yes. The Commission adopted two delegated acts on 3 July 2026 amending the ESRS to simplify certain reporting standards.
What software supports CSRD reporting?
Vendors include Workiva (Q2 2026 revenue $255 million; 6,750 customers), Novisto and Sweep. The Commission must report by 19 March 2028 on technological solutions for sustainability reporting.
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